In a market economy, uncertain levels of inflation
A) make prices less useful as signals for resource allocation.
B) prompt firms to enter into fewer short-term contracts, and more long-term contracts, with suppliers.
C) balance out income redistribution in the long run.
D) are more beneficial to lenders than to borrowers, as lenders have a tendency to overestimate the expected inflation rate.
A
You might also like to view...
Whenever average cost exceeds marginal cost,
A. average cost is rising. B. average cost is falling. C. marginal cost is rising. D. marginal cost is falling.
The slope of the saving function is equal to # randomize
A. The MPS B. The MPC C. 1- MPS D. 1+ MPS
Authoritative estimates suggest that currently union workers on the average:
A. achieve no wage advantage over nonunion workers in the same occupation. B. realize a 5 percent wage advantage over nonunion workers in the same occupation. C. realize a 20-30 percent wage advantage over nonunion workers in the same occupation. D. realize a 15 percent wage advantage over nonunion workers in the same occupation.
The portion of the Obama stimulus package that provided more money (a $25 per week increase) to those who were unemployed is best thought of as
A. monetary policy. B. nondiscretionary fiscal policy. C. discretionary (and expansionary) fiscal policy. D. discretionary (and contractionary) fiscal policy.